4) Suppose an economy is closed and given by the following equations:

C = c0 + c1 (Y - T)

G = C

T = G

I = (1/10) Y

Suppose that c0 = 10/6 and c1 = 4/6, solve for the values of Y and G. Calculate the multiplier. Calculate the effect of a change in autonomous consumption (c0

) has on output (Y).